Ghana's US$600m oil refinery to start in 2015

The construction of a US$600million modern oil refinery plant and associated infrastructure to serve the country and West African sub-regional market is expected to commence in the first quarter of 2015.

The refinery, “Takoradi Oil Refinery Company Limited”, which will start operations within two years after project commencement, is estimated to deliver about 65,000 barrels of oil per day for export and the domestic market. This project seeks to enhance energy security for the country’s power sector, which has been facing various challenges over the years.

During a visit to the proposed project site at Takoradi Port by officials of the lead project, sponsors and investor COX OIL, an experienced Texas-based oil and gas-focused company, Mr. Chris Wilmot, CEO of Takoradi Oil Refinery Company Limited, said all the necessary ingredients for a win-win situation are there at Takoradi Port.

Wilmot explained that Takoradi Port was chosen as the site of their new refinery for obvious strategic reasons -- major among them being existing infrastructure at the port and the ongoing expansion programme that Ghana Ports & Harbors Authority (GPHA) has embarked upon to improve the port.

“You have an active operating port with ready and easy access to receive your feedstock and ship your products; the rail line and road networks terminate right at the port; the safety of our operations in a special designated zone is assured; the security of tenor for the land on which the refinery will be built is assured by our long-term lease with GPHA.

“The port is as well-located in a modern and growing city that can support a relatively good quality of life for families and businesses; and you have abundant human capital that will provide experienced labor force.

“We couldn’t have asked for a more suitable location,” said Craig Sanders, CEO of COX OIL.
“Texas is the world capital of the oil and gas and energy sector, and we want to replicate the efficiencies and best corporate practices of Texas right here in Ghana for the benefit of the Ghanaian economy and the citizenry.”

Director General of GPHA Mr. Richard Anamoo said the refinery will be built on approximately 100 acres of reclaimed land at the harbor, in an area designated specifically as a maritime industrial enclave.

He explained that the ongoing Takoradi Port Expansion Project by GPHA will reclaim more than 1,200 hectares of land and deepen the harbour basin to enable bigger ships call at the port.

Other infrastructure and access roads to and from the port will also be improved to ease traffic congestion, he said.

The sea-ports of Takoradi and Tema in the country are seen as growth-poles, drivers of economic activities and national development.

Construction works to extend the existing 1.087km of breakwater at Takoradi Port, a crucial part of an ongoing expansion project, has been completed.

On completion, the project will pave the way for commencement of work on dredging the access channel to a water-depth of about 16 metres as well as well as the construction of a bulk terminal to serve the manganese, bauxite, cement, clinker and gypsum ships that call at the port.